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The world’s largest sovereign wealth fund announced Saturday it would vote against Tesla’s (NASDAQ:TSLA) proposal to offer its CEO Elon Musk a $56B pay package when the issue comes up for shareholder approval next week.
Norway’s $1.7T oil fund operated by Norges Bank Investment Management (NBIM) raised concerns over the size and structure of the pay package, which a Delaware judge invalidated earlier this year, calling it “an unfathomable sum.”
“We remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk,” NBIM said, according to Reuters.
In May, ISS and Glass Lewis, the two largest proxy advisers, recommended that Tesla (TSLA) shareholders vote against the proposal, which, if approved, would allow Musk to claim corporate America’s biggest pay package.
However, the fund, Tesla’s (TSLA) eighth-biggest shareholder, recognized “the significant value generated under Mr. Musk’s leadership since the grant date in 2018.”.
“We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM added.
Its decision comes days before the electric vehicle maker’s annual meeting on Thursday, when the issue and 11 other proposals will be put to a shareholder vote.
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